On January 30th, the project "government-funded research project cost and management mechanism research",which was presided over by Professor Li Xiaoxuan, was ranked as the excellent project in the assessment held by ministry of management. The project systematically reviews the history, current situation and trend of cost compensation and management mechanism of government-funded research projects domestically and internationally. It also studies the theory and methods of cost and accounting of scientific research projects and analyzes the problems in China's scientific research projects’ cost management, to whichadvice and suggestions were then given. The project lasted four years, during which time the mid-term inspection also rated it as excellent project. The research work has done a good work combining theory and practice, of which the achievementwill pave the way for China's scientific research funding reform.